Disruptions in international logistics combined with challenges in global supply chains generated huge imbalances that branch into all parts of the economy and geopolitical issues.
Despite improvements in the latter half of 2022, the equilibrium in the flow of vessels and containers is yet to be fully restored to facilitate consumer demand and is a key contributor to the inflated cost of goods.
Following drastic price increases for ocean freight containers in 2021 and 2022, rates have fallen below the expected level that experts predicted for Q4 2022 and Q1 2023.
Air freight capacity has increased due to shippers moving back to more affordable ocean freight transport and airlines reintroducing more services as air travel returns to normality.
Cost of fuel remains elevated entering 2023 as the Russia-Ukraine conflict continues to impact the cost of fuel globally and is applicable to all modes of transport.